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1 Aug 2014
BOJ Kuroda: Easing program having intended effect
FXStreet (Bali) - Bank of Japan (BOJ) Governor Kuroda, speaking at a meeting held by the Research Institute of Japan in Tokyo, said, via Reuters, that the BOJ easing program is having the intended effect, adding that the BOJ will adjust policy if needed to ensure price target is met given its clear and strong commitment to its price target.
Plenty of further headlines, via Reuters, included:
Japan’s economy is making progress in meeting 2% target
Japan’s economy has continued to recover moderately as a trend despite a decline in demand following the consumption tax hike in April"
Virtuous cycle among production, income, and spending has been continuing
Favourable developments in the corporate sector have become more pronounced
If inflation expectations are anchored at 2 pct, this will raise potential growth rate due to gains in productivity and capex
Tightening of the labour market has exerted upward pressures on wages
Efforts needed to raise supply capacity as this will determine potential growth
Private consumption continues to remain resilient as a trend
Even if there are supply-side constraints in short-term, economy can grow above potential by improving efficiency
Effects of decline in real income due to the consumption tax hike might gradually manifest themselves, so BOJ will continue to carefully examine future developments
Effects of decline in demand following the consumption tax hike are likely to wane gradually from summer, partly due to expected increase in summer bonuses
BOJ strongly hopes government will push ahead with implementation of growth strategy and that private sector responds
Structural factors may have also played a certain role in keeping export growth flat
Exports have recently more or less leveled off despite the correction of the excessive appreciation of the yen
BOJ will continue to pursue monetary policy aiming at achieving 2 pct inflation and anchoring inflation expectations
Recently, there have finally been signs that firms are planning to increase the share of domestic investment vs that of overseas investment
Japan’s exports are likely to increase moderately due mainly to recovery in overseas economies
BOJ does not want inflation at 2 pct temporarily, wants 2 pct inflation on average year after year
Japan’s economy is likely to gradually shift to a growth path that sustains the price stability target of 2 percent in a stable manner
BOJ will make policy adjustment without hesitation to meet price target if the outlook changes due to the manifestation of some risk factors
Some firms starting to raise prices while increasing quality of goods and services
Gains in prices show people’s inflation expectations will likely follow upward trend
I would like to emphasise that the BOJ will adjust policy if needed to ensure price target is met given its clear and strong commitment to its price target
Inflation is increasingly being taken into account in wage negotiations
Plenty of further headlines, via Reuters, included:
Japan’s economy is making progress in meeting 2% target
Japan’s economy has continued to recover moderately as a trend despite a decline in demand following the consumption tax hike in April"
Virtuous cycle among production, income, and spending has been continuing
Favourable developments in the corporate sector have become more pronounced
If inflation expectations are anchored at 2 pct, this will raise potential growth rate due to gains in productivity and capex
Tightening of the labour market has exerted upward pressures on wages
Efforts needed to raise supply capacity as this will determine potential growth
Private consumption continues to remain resilient as a trend
Even if there are supply-side constraints in short-term, economy can grow above potential by improving efficiency
Effects of decline in real income due to the consumption tax hike might gradually manifest themselves, so BOJ will continue to carefully examine future developments
Effects of decline in demand following the consumption tax hike are likely to wane gradually from summer, partly due to expected increase in summer bonuses
BOJ strongly hopes government will push ahead with implementation of growth strategy and that private sector responds
Structural factors may have also played a certain role in keeping export growth flat
Exports have recently more or less leveled off despite the correction of the excessive appreciation of the yen
BOJ will continue to pursue monetary policy aiming at achieving 2 pct inflation and anchoring inflation expectations
Recently, there have finally been signs that firms are planning to increase the share of domestic investment vs that of overseas investment
Japan’s exports are likely to increase moderately due mainly to recovery in overseas economies
BOJ does not want inflation at 2 pct temporarily, wants 2 pct inflation on average year after year
Japan’s economy is likely to gradually shift to a growth path that sustains the price stability target of 2 percent in a stable manner
BOJ will make policy adjustment without hesitation to meet price target if the outlook changes due to the manifestation of some risk factors
Some firms starting to raise prices while increasing quality of goods and services
Gains in prices show people’s inflation expectations will likely follow upward trend
I would like to emphasise that the BOJ will adjust policy if needed to ensure price target is met given its clear and strong commitment to its price target
Inflation is increasingly being taken into account in wage negotiations